Physician practice transactions get a shot in the arm

Following the Supreme Court decision on health insurance subsidies, healthcare industry consolidation will continue, Stuart Neiberg, a director with HealthCare Appraisers, tells BVWire. In King v. Burwell, the court upheld subsidies under the Affordable Care Act for individuals who buy insurance through federally sponsored exchanges. This is good news for healthcare providers, who faced the threat of losing billions of dollars in patient revenue. The ruling clears the way for providers to maintain a strategy of consolidation.

Going both ways: “The goal is alignment between hospitals and physicians,” says Neiberg. The valuation of physician practices is ever-changing, and things will heat up as remaining practices will be targeted for potential acquisition. Hospitals have been buying practices for some time now, and, interestingly, some of these alliances are not working out. “Some doctors are unhappy with hospitals running their practices, so we’re starting to get requests to value practices to unwind the deals,” Neiberg reports.